Real estate retains second position in FDI attraction
Real estate remained the second biggest magnet for foreign direct investment (FDI) in 2019, following processing – manufacturing, as it attracted 3.88 billion USD of FDI, equivalent to 10.2 percent of the total registered.
About 3.88 billion USD of FDI was poured into the real estate market in 2019 (Photo: VNA)
Hanoi (VNA) – Real estate remained the secondbiggest magnet for foreign direct investment (FDI) in 2019, followingprocessing – manufacturing, as it attracted 3.88 billion USD of FDI, equivalentto 10.2 percent of the total registered.
The Ministry of Construction said the realestate market last year developed rather stably, in terms of supply, number oftransactions, prices, outstanding credit and foreign investment.
The ministry predicted that “bubbles” in themarket are unlikely in 2020.
However, it also forecast possible land pricehikes in the areas designated to become special zones or new residential areaswith synchronous infrastructure, as well as in the housing projects that arelocated in downtown areas, developed by prestigious investors, and have fastconstruction progress and good infrastructure.
This is also the rule of the market, theministry noted.
Meanwhile, the market may witness decline incertain segments due to supply-demand imbalance or difficulties in someproperty projects, especially in the two largest metropolises of Hanoi and HoChi Minh City./.
Only 28 percent of industrial zone workers are provided with stable accommodation, while the rest have to rent houses with poor sanitation and infrastructure.
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There was not a single social housing project in Ho Chi Minh City this year, and with support funds for them being limited, there is a fear the situation could continue, experts said.
Vietnam's real estate market will not be short of capital next year but will still face many challenges from policies and administrative procedures, experts said at the annual Vietnam Real Estate Forum.
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